Understanding Entity Management
Entity management is a complex system that encompasses many facets of an organization. Entity management is a collection of a businesses corporate record, which can be defined as a set of information that details anything including changes to a business and its structure, particularly in regards to mergers, acquisitions, corporate names, legal structures, owners and directors. Entity management as a business function includes multiple departments and job roles within an organization. This includes the legal, governance and compliance departments and sometimes can include the human resources department. In short, entity management is the means of creating a single source of truth in order to better manage the evolution of compliance and tax regulations and the fear of unknown changes and the associated costs for all legal entities within the organization. Entity management is directly managed by the legal and tax department, which includes the general counsel, the corporate secretary, a companies paralegals and all members of the tax department. Additionally, it is something that needs to be clearly communicated to the board of directors in order for them to better understand how the business is growing and progressing.
Entity Management 101
Because of the complexities of entity management, many global organizations are turning to technology to better assist with their needs instead of relying on outdated manual methods. These robust entity management software solutions are comprehensive governance platforms that:
- Improve operational efficiency and oversight across internal teams in order to better manage information
- Create a single source of truth for corporate data to monitor and ensure compliance
- Manage and mitigate risk and liability in order to protect the corporate veil
In order to maximize your entity management strategy it is important to understand what the best practices are and how to best utilize them to achieve success for your subsidiary practices.
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Improving Compliance For Your Entity Management Strategy
Compliance is a central facet of entity management and your organization must walk a fine line to adhere to local, state and country laws. In order to make sure that your entity management strategy does not break any laws, it is imperative to understand how to best remain compliant.
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